Analyst's note: The first audit of the "Federal Reserve" - which is neither federal, is not a bank, and has no reserves - only leaves us wanting to know more BEFORE the operation is abolished. As Americans, we are getting an increased hidden federal tax as a result the "federal reserve." In that the current health (or lack thereof) of our national economy is a critical element of our national defense, this may well be one of the more important articles on this website.
Absolutely must read. At a time when banks and most businesses are paralyzed by economic uncertainty and despite a call from U.S. Rep. Michele Bachmann not to do it, the Federal Reserve (a central bank system that is neither federal, nor do they have any reserves) - a secret cartel operating in support of, but without scrutiny of our federal government - decides to further inflate the American dollar. Whatever else results, this inflation will produce the same effect on the American tax payer as "raising taxes." This inflation will produce a loss of buying power of our dollar as the Fed, with the support of the current administration, in effect prints approximately $900B to buy more bonds. Will those in our federal gov't charged with the national security (includes economic security) of America be stopped in time to cease this madness and reduce the federal spending before it is too late?
This happened in Germany ... something about the Wiemar Republic and hyperinflation. Yes, ... it took a wheelbarrow full of money to buy a loaf of bread.
Central banks have never been a good thing. Federal Reserve -- also currently spelled Greenspan or Ben Bernanke -- is another name for a central bank here in the U.S. BTW, have I said, they are neither federal, nor do they have any reserves?
In addition to your final preparation in gathering together your stock of basic needs. Higher food prices, fuel prices and .... are no doubt coming our the way. Are you ready?
May I also suggest an internal search on this site on "Jekyll" and "federal reserve" and maybe also a quick read as well of a recent article entitled "Banks' $4 trillion debts are 'Achilles heel of the economic recovery', warns IMF."
Our national debt is now being "monitized" despite promises to the contrary.
We know that the Federal Reserve is a scam -- it is not federal and is without reserves. The Federal Reserve is not any more federal than the company called Federal Express. The Federal Reserve Banks are not even banks. This cartel of bankers and politicians is a conscience and deliberate effort of evolution -- also involving the International Monetary Fund & World Bank -- into a world central bank where those involved will issue a world fiat currency. Along the way, this will reduce competition and increase their own profitability in nations that would otherwise operate with free-enterprise competition.
Fiat money is paper money without precious-metal backing it and the people are required by law to accept it. Just for the record, as an example I'm describing the American dollar.
Through a financial game of "buyout & bailout" eventually nations and States are no longer capable of independent actions will accept the loss of national sovereignty in return for aid from what, if not stopped, will eventually become a one-world government. The Federal Reserve or Central Reserve System described here is buying the governments of countries and States within the United States, and using our money to do it. This is a form of "redistribution of wealth." In every almost every case throughout history where this game of deceit was permitted the governments fell.
'Banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.” – Thomas Jefferson
Observed over time, we see the results of this Federal Reserve system and other central banking systems to be: elements of war, revolution, depression and fraud. It is time to abolish the Federal Reserve system that conceived secretly in America at at meeting in November 1910 on Jekyll Island off of Georgia.
Click here for the balance of this video. If you want to know more details of the Federal Reserve, then I recommend a book entitled "The Creature from Jekyll Island: A second look at the Federal Reserve" by Edward Griffin.
The world is not being saved from poverty - quite the opposite - and the American public is not protected currently from this grand cabal. American taxpayers are covering ever increasing values in defaulted national and international loans, so that interest payments continue to the banks. We also have a number of states in trouble, projected to fester out in 2011, but none maybe so deeply in debt as New York, California and Michigan.
Even though the Feds are printing money out of thin air for the purpose of lending, the people are then taxed to help keep them in the dark as to the source of the "money" they see flowing. Mr. Obama really does not have a "stash" from which he can pay the poor, unless you are willing to count the Federal Reserve. Progressive taxes are especially popular to the elitist social planners who use them to wage war against the middle class as they redistribute their wealth.
In speaking about the Federal Reserve and the tyranny of the majority Mr. Walter E. Williams has noted, "[...] The justification for its creation was to end bank failures and have stability in price levels. However, if you do a before and after study, there were a greater number of bank failures after the Federal Reserve bank was established than before it came into being. And price stability was greater before its enactment as well. In terms of its stated mission, it's a total failure."
This secret cartel known as the federal reserve system -- an instrument of totalitarianism -- needs to be abolished.
We must immediately:
1) Cut and Freeze Spending and stop the federal addiction to spending (this includes disbanding the so-called Federal Reserve);
2) Repeal Obamacare;
3) Stop the Obama Tax Hikes;
4) Protect America; and
5) Get Control of Government.
=================================================
"ATLANTA, Aug 28 (IPS) - The first-ever audit of the U.S. Federal Reserve has revealed 16 trillion dollars in
secret bank bailouts and has raised more questions about the quasi-private
agency's opaque operations.
[....] The majority of loans were issues by the Federal Reserve Bank of New York (FRBNY).
"From late 2007 through mid-2010, Reserve Banks provided more than a trillion dollars. in emergency
loans to the financial sector to address strains in credit markets and to avert failures of individual
institutions believed to be a threat to the stability of the financial system," the audit report states.
"The scale and nature of this assistance amounted to an unprecedented expansion of the Federal
Reserve System's traditional role as lender-of-last-resort to depository institutions," according to the
report.
The report notes that all the short-term, emergency loans were repaid, or are expected to be repaid.
The emergency loans included eight broad-based programmes, and also provided assistance for certain
individual financial institutions. The Fed provided loans to JP Morgan Chase bank to acquire Bear Stears,
a failed investment firm; provided loans to keep American International Group (AIG), a multinational
insurance corporation, afloat; extended lending commitments to Bank of America and Citigroup; and
purchased risky mortgage-backed securities to get them off private banks' books.
Overall, the greatest borrowing was done by a small number of institutions. Over the three years,
Citigroup borrowed a total of 2.5 trillion dollars, Morgan Stanley borrowed two trillion; Merryll Lynch,
which was acquired by Bank of America, borrowed 1.9 trillion; and Bank of America borrowed 1.3
trillion.
Banks based in counties other than the U.S. also received money from the Fed, including Barclays of the
United Kingdom, the Royal Bank of Scotland Group (UK), Deutsche Bank (Germany), UBS (Switzerland),
Credit Suisse Group (Switzerland), Bank of Scotland (UK), BNP Paribas (France), Dexia (Belgium),
Dresdner Bank (Germany), and Societe General (France).
[....] The GAO also found existing Federal Reserve policies do not prevent significant conflicts of interest. Forexample, "the FRBNY's existing restrictions on its employees' financial interests did not specifically prohibit investments in certain non-bank institutions that received emergency assistance," the report stated.
The GAO report noted on Sep. 19, 2008, William Dudley, who is now the President of the FRBNY, was
granted a waiver to let him keep investments in AIG and General Electric, while at the same time the
Federal Reserve granted bailout funds to the same two companies. [....]"
